Walston & Co. – lnc. – – – – – Members New York Stock Exchange FILE COpy NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHJCAGO OFFICES COAST TO COASl AND OVERSEAS TABELL'S MARKET LETTER May 19th, 1961 The market showed excellent technical action during the past week. Cautionary statements relative to the sharp price advance in new issues and obscure over-the- counter stocks resulted in sharp declines in a number of issues of this type, but had no great effect on the general market. There has been a lot of stupid and uninformed gambling in speculative securities. However, the amount of money used in these fast buck operations is relatively small when compared to the turnover in the secur- ities of sound, seasoned companies. 'life believe the market can weather price adjust- ments in overvalued situations without much difficulty. The action of the past week would lead to that conclusion. Except for some weak- ness on Thursday, the market moved higher and closed the week at 705.96 on the Dow- Jones Industrials as compared to 687.91 a week ago. The weeks new' intra-day high was 708.Go.Our Breadth-of-the-Market index also reached new high territory along with the averages. Recent market action continues to verify our conclusion of more than a month ago that market leadership is shifting from the overvalued glamour issues and defensive groups to the more basic, though cyclical groups. This type of action c'ould continue for a long period of time. There is no change in our recommended list since the last compilation of April 21st other than the addition of Carpenter Steel (46) in last weeks letter at a price of 47. This week we are adding Kerr McGee to the list. The stock was split two for one recently. The old stock reached a high of 120. Friday's close was 99and the when issued stock closed at 50. We are much impressed he long term speculative possibilities of this stock and believe it has had a sufficie of its recent sharp advance to warrant purchase. It is a mediuIff5ize 1 y\Me ed oil company and, through the wholly-owned Kermac Nuclear Fu'eJ,ii4S' t factor in the uranium The basic i aila3lE! for perusal at the desk of your Walston representative. – On November 4th, we c endation of stocks selling below 20.00 a share that,from a interesting upside potentials on a percentage basis. It w s str s be bought as a package in order to provide the neces t' 'n a speculative list of this nature. An addi- tional five issue on March 3rd. As of Thursda se average price advance of the first low-priced 4th, as against 180/0 for the Dow-Jones Industrial aver- age for the same pe The five issues recommended on March 4th have advanced 9 as against 4 for the Dow-Jones Industrials. If the market continues to advance it would be expected that this spread will widen. The list is below. Some . -. issues have moved above 20.00 a share, but retention is still advised. Allied Paper American Radiator Avco Burlington Industries Campbell Chiboug. Chicago, Mil., St. Paul Commercial Solvents Divco- V,fayne Flying Tiger Foote Mineral Fruehauf Trailer Getty Oil International Packers Price 11/4/60 10 5/8 14 1/2 13 7/8 18 3/8 5 7/8 15 1/4 19 17 1/8 14 3/4 19 18 3/4 141/4 15 3/4 Current Price Current Price 11/4/60 Price 18 1/4 Kaiser Ind. 8 3/4 12 3/8 15 1/8 Lear, Inc. 161/2 243/4 185/8 McCrory Corp. 13 231/8 18-5/8 Manhattan Shirt- 19 21 9 3/4 National Can 91/4 13 15 5/8 Northwest Air. 15 3/4 28 30 3/4 Pacific Petroleum 10 1/4 12 1/4 18 5/8 Rayonier 16 1/8 211/8 19 3/8 Rohr Aircraft 15 25 25 5/8 Serve1 12 1/8 18 1/8 25 3/4 Sun Chemical 13 5/8 16 7/8 20 1/8 Victoreen Inst. .16518 161/2 20 3/8 Price as of March 3rd, 1961 Adjusted to include price of Phillips- Es;kbardt alii This market letter IS not, and under no Clreumstances is to be construed as, an otter to sell or a BoheitatlOn to buy any r,efcrred to herem. The mformntlOn contalT\jJd herein as to or completeness and the furmshtnp; thereof 18 not. and under no circumstances 18 to be construed as, 11 represcnta- DGWbtJ Wli1eu1 QItIU. Inc AM c(fi'rQoontR) opimon arc subject to change Without notice Walston liHOd'IJ'THbJdml ltlticmAmtRl-s..TStockholders and Employees sell anil' may'llave an mterest in the securities mentIOned herein. ThiS TPfIf; 5'& an9 not as a complete analySIS Addluonni mformatlOn tn\e'ifdel lndIl\-est1'itaiffiMly as a general. .g–.- —- – .. . ,—-.——.——- .,,– ..- – – / –

r- Walston &Co. Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CH.JCAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER May 26, 1961 Despite a recovery late Friday, the Industrial average closed some 9 pOints lower on the week after reaching a newall-time intra-day high of 714.69 on Monday. The decline in the averages was accentuated by the dip in American Telephone, duPont and General Motors. Probably at this stage of the market, tho averages have even less mean- ing than usual. Market leadership is changing as the business pattern improves and, after some further churning back and forth over the next month, we expect the market to move higher with the more basic companies in the front line. Shortly before the first of the year this letter was fortunate enough to suggest the purchase of INTERNATIONAL MINERALS & ..apital -gains. At – thtt time the stock was selling for around 32. It has since moved up to a 1961 high of 50 1/4 and has been consolidating in the 45-50 range. Despite the advance in price, the stock still appears extremely attractive. At the time of the original recommendation, a number of factors were noted. It was suggested that rising costs, which had prevented any substantial increase in per- share earnings over the past ten years, were about to level off, and that further growth in sales could, in all probability, be brought down to net income. The growth in world 'demand for fertilizer was pointed out, and it was suggested that the company's consumer products division, which markets monosodium glutamate under the trade name of Ac'cen could well make a substantially increased contribution to both sales and net. The poten- tialities inherent in the company's new potash development at Esterhazy, Saskatchewan, were also noted. Recent developments make our original projection in regard to this mine appear quite conservative. Mr. Claude O. Stephens, President of the Company,re- cently estimated that that company's potash projectar ab \Wh, ould produce 5 million annual net income. This estimate he 0 ser ve one. Since Texas Gulf has only a 750/0 net profit interest in the pro' , an extension of Mr. Sit ph ep.s, WQuid indicate ,that it is ' million 'after taxes. Assuming a 45 tax rate to io owance, the mine would then be earning some 11.8 million bei dc6e etion, or slightly more than 10 per ton based Oil anticipated ti 1 tons. , IGL expects t h i r y mine in production by mid-1962 with an initial 450, OOO-t c i , rt ereafter to be increased to a million tons. Fur- ther increases are b1 However, assuming the mine's profitability is the same as the Texas G 0 tion, it could be producing 1.60 per share based on 450,000 tons product' and 3.50 per share based on a million tons before taxes and depletion. This would be in addition to the normal growth in earning power which should take place over the next three to four years from the company's present operations. Regarding the Esterhazy mine, the following factors should be noted (1) The ore body is believed to be somewhat richer than the Texas Gulf mine and profitability could, therefore, be even greater, (2) Canadian tax laws make it probable that earn- ings will be largely or completely sheltered from income tax in the initial years of operation, (3) IGL, currently a major producer of fertilizers, has already-established outlets for potash. (4) The Saskatchewan mine has a number of obyious advantages il regard to shipping to mid-western fertilizer markets. There appears, moreover, to be little doubt abo,ut, the company's ability to market their-product. Vvorld demand for potash is growing at a rate of 600,000 tons annually, and long-term projections indicate demand should outrun current foresee- able supply in every year to 1970, with the exception of the 1962-65 period. Even in this period over-capacity will be slight. Based on the above factors, it does not appear at all optimistic to suggest that IGL could double its current earning power(3. 15 per share is estimated for the year ending this June) by 1964-65. Indeed, it is quite possible that the increase in earning power may be substantially greater. Diyidend payout has historically been relatively liberal and there is every expectation that,as earnings increase, the current 1.60 annual dividend rate could also be moved upward. From a technical point of view, the stock continues to have a minimum upside ob'ective of 75 with a ossible readin of even hi her levels Purchase is aain su,,- to be construed as, an offer to sell or 0. sohCltatlOn to buy any securittes referred to herem The information contnmed herein is not gUoranteed as to accuracy or completeness lmd the furmshIng 'P to be construed as, a rerresenta- D I'tJtD 4,.('.A, n…C of opInion are subject to change Wlth6fttt 'iHIM &V fio have an mterest 18 the secUrtUeI letLfH a !l' AJObiWJNt w…. Directors, Stockho ders and and presented merely as general, 101referred to herem

Walston &Co. Inc – Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHlCAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER June 2, 1961 There continues to be no change in the favorable pattern of the market. Continued weakness in some of the overplayed glamour issues has had little effect on the general market other than a slowing down of the pace of the advance. From a technical viewpoint, this is a sound development and we would like to see it continue for some time longer. Our breadth indices have shown no great change and are acting just about the -'lll as the market. A preliminary warning signal would be a divergence between the averages and breadth. This usually happens quite a bit before the market averages reach their 'Ul;!;P and indicates a slow topping out with each group one by one reaching its high while otllE/Jr1 groups are' still advancing until finaily the 'entire market fails-of its process takes a long time. This preliminary warning signal of divergence between the averages and breadth has not yet occurred and the indication remains that the market still has further to go from both a price and time viewpoint. Of course, as we have noted on numerous occasions over the past two months, the character of the market is changing. The first upward phase has been completed and the defensive groups like the foods, tobaccos, utilities have probably seen most of their ad- vance and will remain in a broad trading area for a long time. The glamour issues sell- ing at extremely high price times earnings ratios probably have also, in the majority of cases, made their highs for some time to come. Here, however, the decline could be cotsiderably sharper than in the defensive groups. The leaders of the advance from here on will be the more basic industries. This fits into the pattern of a business upturn and a probable sharp upturn in earnings of basic, cyclical companies that will appear more attractive than the now to eternity projection of earnings of many of the glamour iss'ues.1 Of course, individual issues will follow patterns Radio (174 became part of our recommended list on t 9 lWIt ached a high of 176 1/4 on Friday. From a technical ps otential of 175-190. It has reached the lower part of its objective in shotf\ as Industria . a 76 advance in five ame time'period;–The stock – may work somewhat higher into the p a h -190 area, but it would appear new pattern for a further adv c. N r\ it from the recommended list. V/oolworth(80 in liE Zenith. Last mo t ou ecommended list at 69 at the same time as unced plans to establish a chain of discount de- partment stores an Ii st c s advanced to a new high of 81 3/4 on Thursday. Despite its rise, we believe e is still reasonably priced for long term holding. Woolworth is the giant of its in y and accounts for about one-third of the combined volume of all United States variety store chains. The company's importance in retail merchandising and the large resources available to it makes its entrance into discount store operation an extremely significant development. Many authorities on retail merchandising feel that the industry is undergoing a transition similar to the change from the corner gro- cery store of forty years ago to the chains and supermarkets of today and that this development is still in its early stages. The discount store industry has shown tre- mendous growth in recent years, but most of the units are still relatively small in size. Woolworth presumably will become the giant of this industry also. It plans to open its first discount store this year and each store will have at least 60,000 square fe'-t of floor space as compared to 20,000 to 30,000 square feet in Woolworth's newest variety stores. The discount store operation could become an important contribution to Wool- worth's earnings over a period of time. Earnings for 1960 were 4.84 a share and 1961 earnings are expected to reach the 5.00 level. Based on estimated 1961 results, the stock is now selling at about 16.4 tim es earnings as compared to a ten-year average of 13.9. The present dividend is 2.50 annually, but there is a probability that the rate will be raised to 03.00 later this year. It is also interesting to note that the market value of the 52.7 ownership of its British subsidiary, Y/oolworth, Ltd., is equal to about 79 per share of Vloolworth stock. The technical pattern is favorable. With the exception of 3. four-month period in late' 1957 when the stock dipped to a low of 35 1/2, Woolworth held in a narrow trading area between 40 and 54 for the twelve years between 1947 and 1958. It broke out on the upside of this long shelf early in 1959 and moved slowly higher against the general market decline in 1960. Until the recent upside breakout, the stock held in the 713-64 range for elE!V'en months. The intermediate term technical ection is 98 and ns a general, herein WIll be WN 301

FILECO'Y Walston &lJO. Inc Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CIICAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER June 9, 1961 Last week's market was a two-sided affair. Most of the basic issues held steady or even advanced, while the glamour issues continued their decline. Some of these declines have been extremely severe as witness drops in such market exotica as Avnet from a high of 68 1/4 a month ago to a low of 44, a slide in Brunswick Corp. from 74 to 53, a decline in Transitron to 27 1/8 from this year's high of 42 3/8, and last year's high of 60; a drop in Foxboro from 87 to 67, and Perkin & Elmer from 83 1/2 to 57 3/4. Even more drastic declines occurred in some issues over-the– .– counter. The market appears to be undergoing an internal purge with the correction in the overexploited growth issues having little effect on the general market. During the same period, which witnessed the declines noted above, such market wheelhorses as Singer Mfg. advanced from 70 to 102 1/2, Woolworth from 67 to 88 7/8, American Smelting from 56 to 72 1/4, and American Viscose from 45 to 62 3/ 4./The trouble with the growth issues is probably caused by poor buying in recent months. The original concept of buying issues of smaller companies that have had an outstanding growth record over a period of time is a sound one. The original buyers of this type of issue were sophisticated institutional buyers or larger individuals who bought for long-term investment holding and not for trading turns. The entry of the fast buck boys pushed these equities in many cases to unreasonable levels, particularly in some of the lower-priced new issues with little or no past record of earnings. Some of the better issues probably have had about sufficient decline, but it will take a long time to consolidate and, from a technical new bases. These issues probably have seen their highs for a long t etc 8). Some of the less respectable issues will undoubtedly work admonition of Mr. Bernard Baruch who, a long ti a s ' e to heed the 0, d in times of market enthusiasm t to .' — two and two make four, two -and twomak There is no change in 0 r n ist except that we are dropping 1960 at a e a r he three-for-two split this year. Since that time it ha t 0 s ell as the Dow-Jones Industrial average, which has appreciated a i most 100 for McCall. The year's high was 39 1/4. The stock may wor so /; at higher to the 40-43 level, but other issues appear to have better potenti ver the intermediate term. Another stock in our recommended list, American Viscose. (60 7/8) has advanced sharply in the past week. While this issue has reached its initial objective, we still advise holding even though some consolidation may be needed. The long-term potentials indicate higher levels. The development of Avicel, the new food additive, is most interesting. There is always the possibility also of the eventual spinoff of the company's holdings of Monsanto Chemical which has a value of about 39 per share of American Viscose. There are a number of issues in our recommended list that appear to be a bit behin d the market. Included in this group are Anderson Clayton Barber Oil Carpenter Steel General Mills Heyden Newport Kerr McGee Dow-Jone Ind. 700.90 Dow-Jones Rails 143.93 Marquette Cement National Aviation Thompson Ramo Wooldridge Twentieth Century-Fox V.S. Borax V S. Vitamin EDMUND W. TABELL WALSTON & CO.INC. This letter 18 not and under no CIrcumstances IS to be construed as, nn offer to sell or a sohcItatlOn to buy any secunties referred to herem The contained herein IS not as to accuracy or completeness and the furnlshmg thereof lS not, and under no circumstances 15 to be construedsk; d bon by Walston & Co. Inc. Employees thereof purchase All sell expressions of opinion are subject to change Without notl!'e Walsten & Co, Inc, and Officers, Directors, c 0 Bnd may have an mterest in the SecUrltlCS mentiOned herem. ThIS market letter is Intended and presented mereiyhas a geeraniat'nbi, informal commenUuY on day to day market news anI not as a complete analYSIS AddltlOnaJ information with respect to any SecUrities referred to crem Joi . -..– -9

Walston &- Co. ———Inc.——— Member8 New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CH,iCAGO OFFICes COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER June 16, 1961 For some two and one-half months now the market appears to have been con- solidating. After a high of just over 700 on the Dow-Jones Industrials was reached in early April, a reaction to 671.64 took place. A new high above 714 was made in late but the market was unable to follow through and a low of 681. 16 was reached this week. During this sidewise action, volume has been sharply reduced. The 680-670 zone would appear to be a good support area. As this letter pointed out last week, there has been a great change in market leadership during thifj consolidation period. While the market.has been holdingstea.dy, many glamour issues have declined sharply and the sharp rise in a number of u.,,;;, issues has halted. This can be shown by the following table which lists the performance of some thirty-two Standard & Poor Industry Indexes from their October 1960 low to April 1961 high, the start of the sidewise market mentioned above, and the performance of the same thirty-two group,. since. /0 Change Oct. Lt'w – April High Electronics 4;J'f3 Machinery Office Equipment 4l 4f) Soft Drinks 30 Finance Companies 3 Tobaccos 31'1 Mining & Smelting 36 Coal 31 Coppers Radio & TV 3l 3 1 Tires Mining & Smelt. Coal Distillers Food Air Transportation WRet 0 i as ctrlca uipment 10 10 9 9 6 5 5 5 4 4 – . — 3 500-Stock Aric. AIrcraft Vc& Brewers G Distillers Oils 26 Aluminum 25 Building 23 Retail 23 Cont. Metal-Glass 22 Steel 22 Textiles 22 Rails 21 Paper 19 Chemicals 18 Containers-Paper 18 Tires Air Transportation Autos Electrical Equip. 15 13 10 -7 Tobaccos Containers-Paper Coppers Aluminum Finance Companies Radio & TV Rails 500-Stock Aircraft Drugs Machinery Utilities Building Cont. Metal-Glass Oils Steels Electronics Textiles 2 2 2 2 1 1 -1 -1 -1 -1 -2 -2 2 -2 -5 -13 Some of the changes are obvious. Such groups as Electronics, Machinery, Soft Drinks, Finance a'ld Tobacco, which led the bull market to April, have turned in com- paratively poor performances since then. Tires,Air Transport, Chemicals and Autos, which had been laggards during the previous six months, now find themselves close to the top of the list. This change in leadership is typical of a mature bull market and it will, in all probability, continue, with the so-called cyclical issues replacing the growth and defen- sive type stocks as market leaders. ANTHONY W TABEI.I, aW u&uGQor coi9mptolebteenceosnssatrnudedthaeBofunrnnIoSfhfeinr gtotherroJl1'lI; not, and under no CIrc,uemUst)alnGce.rse1f8etrorebde ctoonhsetrrueiend DTBh,e.amrefoprrcmsaetnltonn opinIon are to change WIthout notice Walston & Co, Inc, and Officers, Directors, Stockholders and an mterest In the securIties mentioned herein ThlS ma.rket letter IS Intended and prCl!l!nted merely as a genernl. an9 not as a complete analYSIS Addlttonal Information With respect to any secuntlC9 referred to herem

Walston &Co. – – – – I n c , ;,…..;……,;….;… Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHlCAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER June 23, 1961 With trading volume at the lowest levels of the year, the market made little progres in either direction over the past week. The intra-day low of 673.49 on the Dow-Jones Ind s trials on Monday was followed by a rally to 691.42 by mid-week. The week's low of 673.4 compared with the April low of 671.64 which was reached prior to the newall-time intra- day high of 714.69 in May. The breadth-of-the-market index has flattened out since March and has acted just about the same as the general market. The correction of the overspecul tion in the glamour issues has taken place so far without too much damage to the gener market pattern. The Industrial average has advanced approximately 150 points from the October 19w of 5p4. 23 . A one-third correction of the advance would bring the average bac to 665 and a one-half correction would mean a decline to 640. A one-third to one-half re- tracement would be normal technical action after a temporary overeXtension of an advanc So far, the market has held above both these points. What has occurred,however,has bee a definite loss of upside momentum as revealed by the sharp drop in turnover with short- term traders in the overexploited issues now becoming involuntary investors. The technical pattern of the market indicates several probabilities that this letter h s been stressing for quite some time. To summarize — (I) The market is in the final phase of a twelve-year major bull market t hat started in 1949 and has resulted in a 309/0 advance in the Industrial average and much wider adva c s in individual issues. (2) The Industrial average did not reach its ultimate high for the bull market at the y high of 714.69. The technical indications are that a high will be reached somewhere betwe n 725 (which seems low) and 825 (which seems high). An advance from present levels to the higher objective would be an advance of about much better. 08viously could do W (3) After the high is reached,a long of ral years' duration ;&1may take place with the Industrial average in a been 800 and 550. The Ind of anYpreent. – (4) For the shorter term, d the first phase of the advance from the October low in April. t market leaders had been, (a) defensiv groups such asUtilit'e ac s, etc. ,whose earnings held up or even advanced during the mild e' n ), glamour issues where the reasoning was that imme diate earnings wer e gnificance when compared to projections or anti,cipation of continued growth ov e next five years or more. Most of the stocks in these two t groups have probabl de their highs for a long time to come. There will be exceptions, of course. The leaders of the next advancing phase will probably be found in the more basic but cyclical groups where earnings comparisons have been poor but should, by the third or fourth quarter, become increasingly favorable. (5) The market will probably remain in a trading area for some further time with the correction of the excesses in some new issues, over-the-counter speculative glamour stocks and other overpriced issues continuing. The distributional tops formed in the In- dustrial average indicate two possible downside objective zones. One at the 680-670 level has already been reached. There is also a possibility of 665 -650, which more or less co- incides with a 33 1/3/0-50/0 retracement of the advance from the October lows. In any event, I would consider the 680-650 zone to be a broad buying area. I expect the Indus- trial average to reach a new high by late summer. – Of course, any general prediction, even if correct, is meaningless unless the right securities are bought and sold. Many issues have probably made their high for the advance. Many others still have a long way to go. Even in the present shorter term con- solidating phase numerous issues have reached their lows while others may work some- what lower. One of the issues in our recommended list, Swift & Co. (39 3/4) has acted poorly since its originally recommended level of 44 1/2, but appears undervalued at present levels. Earnings for the 26 weeks ended April were very poor with a decline to 69 as against 1.54 in the same period a year ago. Higher livestock prices resulting in reduced profit margins were the reason for the poor showing. However, livestock population has reached its low and supplies are likely to increase for the next several years. This should be very constructive. Belieye the stock sbould he hought offerand is to be construed as, an to sell to herem. The anformatlon Dm('onwtain ermn bk'lh'nl!'curacy or completeness fUld the fUlnishmg thereof of opinIOn are subject to chnnge Without noNVat1..ua rctpli be consttued as, n reprcscnta- 0 n&.,. rJ. DmiJ Directors, Stockholders and bmployeesilicroof, purcnase, nn mterest III the securities mentioned herem ThiS market letter IS Intended nnd presented merely as a mformnl commentary on day to day market news amJ. not lIoB a complete analYl!1S Additional mfol mahon With respect to nny BccurltlC'J referred to herem – – – — – — ,— –

FILE'COPY .' Walston &Co. Inc Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER June 30, 1961 With the trading pace dropping to a new level of lethargy, the Dow-Jones bdus- trial average drifted last week. It did, however, manage to hold above the low of 673.49 reached on June 19th. As was suggested last week, two support levels exist – one at 680-670, which ha been reached, and another at 665-650. The market at the moment 'appears to be just abov the upper part of what should be a broad buying zone. However, any mention of the aver- ages at this pOint is even more academic than usual. With breadth-of-the-market having declined for some' six straight weeKS now, it is obvious 'that future upside ,actiVity will be far more selective than has been the case in'the past. The problem will be what stocks to own — not what is the market going to do. A practical example of the importance of selectivity can be found in the action of our recommended list. In order to prepare for an anticipated change in market leadershiF we are, this week, dropping seven issues from the list, replacing them with five others. The seven issues being eliminated are CIT Financial (76 1/2), Carnation Co. (82 1/4), Great Western Financial (473/4), Singer Mfg. (973/4), Standard Oil of Kentucky (823/4) Warner Bros. (78) and Wm. Wrigley (107). These seven issues bring to twenty-one the number of stocks formerly recom- mended in which this letter has recommended acceptance of profits since the first of the year. These stocks were recommended for varying lengths of time, the longest holding period being five years and the shortest around six months. All twenty-one stocks ad- vanced from the original recommendation to the day they were selected for sale, with the largest advance being 363/0 in the case of Magnavox, in Septem- ber, 1957, and suggested for sale last April. The averag d all twenty-one issues was 71/0. Of course, since the various issues were 0 i ally r mended at different L times,their percentage'performance is of n1 -comparedwith-the'perform- – ance of the Dow-Jones Industrials er'. Here the tabulation is significant With only three exceptions, all 0ijh t w IP'!-o d as much or more than the Dow. leading performer was while the Dow was advancing 22/o,an advance ten times as t er reS Magnavox performed 8.1 times as well as the Dow, while eN a dropped this week, i originally suggested in January 1959, and being 05/0 while the Dow was advancing 15/0 — an advance seven times as grea dex. On the average, the twenty-one stocks performed 3.7 times as well Industrial average during the same period. As mentioned above, five stocks are being added to the list. We continue to feel that the airline industry is entering upon a new phase of growth and American Airlines (24) joins United Air Lines on our list. Colgate Palmolive (44), with the bulk of its earnings coming from abroad, appears to be in a position to benefit from the riSing worldwide standard of living. Entry into the proprietary drug field holds promise and eventual improvement of the rather desultory domestic operation could exert a substan- tial effect on earnings. B.F.Goodrich (64 7/8) offers representation in two industries, rubber goods and chemicals. which have not provided much market leadership since 1956. There is evidence, however, that the rather disappointing recent earnings trend may be reversed. The stock has a possible upside objective of 88 to 96. Pullman,Inc. (40;1/8), with an upside potential of 61, is largely a capital goods producer, and should be an important beneficiary of any business upturn. Sperry Rand (27 5/8) has declined from a 1961 high of 35 and, from a technical point of view, the reaction would appear to be at least largely completed. The long range prospects in electronic data process- ing, which should become profitable by next year, are favorable. Other issues,already in our recommended list which appear attractive at this time are Diamond National (40), Ex-Cell-O (39 3/8),General Mills (32 3/4), International Minerals & Chemical (42 1/2) Kerr McGee (45 7/8), J. C. Penney (43), and Woolworth (76 1/2). The complete list is available for perusal at your Walston office. Dow-Jones Ind. 683.96 Dow-Jones Rails 139.47 ANTHONY VV. TABELL WALSTON & CO. INC. ThiS market letwr is not. and under no eircumstances IS to be construed. as, an ,ff,r to sell or B solicitatIOn to buY B!'Y seeUfltJes r.eferred to herem The informabon eontamed herein 18 not guaranteed as to accuracy or completeness and the furnlshmg thereof IS not. and under no clrcumstallces IS to be construed as, a representa tIon by Walston & Co Inc All expressIOns of OPinion are subJect to ellange WIthout notice Walston & Co, Inc, and Officers, Directors, Stockholders and Employees thereof, sell and may have an mterest In the securities mentIOned herem. ThiS market letter IS mtended and presented merely 8S general. informal commentary on day to day market news anq. not as a complete analYSIS Additional mformatlOD With respect to any securities referred to herem will be furmshed upon request. \\ N .301 , June 30,1961 RECOMMENDED LIST OF STOCKS SELLING ABOVE 20.00 A SHARE Edmund W. Tabell Walston & Co. Inc. Close 6/29/61 American Airlines American Broad. Para. American Metal Climax American Optical American Potash & Chern. American Smelt. & Ref. American Stores American Viscose Anderson Clayton Arkansas Louis.Gas Audio Devices Barber Oil Bestwall Gypsum Boeing Airplane Carpenter Steel Caterpillar Tractor Central & South West Chicago Pneumatic Tool Cluett Peabody Colgate Palmolive Columbia Pictures (b) Columbian Carbon Consolo Mining & Smelt. Consolo Natural Gas Daystrom Deere & Co. Diamond National Dome Mines Eastern Gas & Fuel Electric Storage Battery EI Paso Natural Gas Ex-Cell-O First Charter Financial Food Machine Chemical Ford Motor Freeport Sulphur Garrett Corp. General Amer. Transport. General Mills General Precision Equip. Georgia Pacific Corp. Goodrich, B. F. Granite City Steel Great Northern Paper Great Western Sugar. Haveg Industries Hercules Powder Hertz Corp. Heyden Newport Holly Sugar Ideal Cement Insurance Co.of N.A. Intern'l Min.& Chern. Intern'l Tel & Tel Jewel Tea 24 48 3/8 32 7/8 74 55 1/2 66 7/8 84 56 3/8 40 36 36 1/4 60 44 1/4 47 44 1/4 37 1/2 43 32 7/8 64 3/4 43 5/8 27 1/2 61 3/4 26 3/8 55 25 1/2 55 3/8 40 1/2 22 36 3/4 56 1/2 26 39 1/2 45 3/4 69 1/2 81 1/8 30 3/4 44 5/8 88 33 64 1/2 69 63 1/4 46 1/4 55 7/8 37 37 90 3/4 64 1/2 23 3/4 35 3/4 29 7/8 91 1/2 42 5/8 52 3/4 62 1/2 Original Recom. Price 24 45 3/4 24 5/8 54-50 42 7/8 55 1/8 74 (a) 52 3/8 36 3/4 35 3/4 26 3/8 67 1/4 (a) 393/4 (a) 36 3/4 47 30 1/2 40 1/4 28 3/8 56 3/4 43 5/8 21 7/8 52 1/2 20 3/8 51 1/8 45-43 52 3/4 35 1/2 25 1/8 29 3/4 54 28 35 3/4 29 1/8 60 3/4 69 1/2 24 7/8 51 7/8 79 3/4 32 3/8 56 47 1/8 (a) 63 1/4 37 1/2 57 29 345/8 (c) 80 1/4 65 1/8 23 7/8 30 1/2 26 7/8 78 32 48 50 1/4 S&F Rating B B B B B B A B B A- BB AA A B B AB B B A B B B B B B B A A B A AA A B B A B B B B A A B B B B A Comment Buy-Hold Buy-Hold Buy-Hold Hold for 90. Hold for 60. Hold Hold for 95 -100. Buy-Hold Buy-Hold Buy-Hold Hold Buy-Hold Hold Buy-Hold Buy-Hold Hold for 45. Buy-Hold Buy-Hold Buy-Hold Buy-Hold Hold Buy-Hold Buy-Hold Hold for 75 Buy-Hold Hold for 80-85. Buy-Hold Hold Buy-Hold Buy-Hold Buy-Hold Buy-Hold Hold for 50. Hold for 90-100. Buy-Hold Buy-Hold Buy-Hold Buy-Hold Buy-Hold Hold Hold Buy-Hold Buy-Hold Buy-Hold Hold for 45. Hold Hold for 115-125. Buy-Hold Buy-Hold Hold Buy-Hold Buy-Hold Buy-Hold Hold Hold for 80. — !; –e -2- Johns Manville Kennecott Copper Kern County Land Kerr McGee Lone Star Gas Louisiana Land Explor. Marquette Cement Martin Co McIntyre Porcupine Mesabi Iron Microwave Associates Miss. River Fuel National Aviation Newmont Mining North Amer.Aviation Northern Natural Gas Northern Pacific R. R. Oklahoma Gas & Elec. Pacific Gas & Elec. Panhandle Eastern Pipe Penney, J. C. Phillips Petroleum Pillsbury Mills Pitney-Bowes Pittsburgh Plate Glass Pullman, Inc. Reeves Bros. Reynolds Metals (f) Richfield Oil Royal Dutch Seaboard Airline R.R. Seaboard Finance Southern Calif. Edison Southern NatuiaLGas. Sperry Rand Sterling Drug Swift & Co. Tennessee Corp. Texas Gulf Sulphur Thompson-Ramo Wool. Twentieth Fox United Air Lines United Artists United Biscuit United Shoe Machinery U,S,Borax U ,S, Vitamin Varian Associates Woolworth, F. W. Close 6/29/61 66 845/8 64 1/2 45 7/8 26 1/2 75 1/4 57 35 1/8 34 7/8 116 1/2 41 5/8 39 28 1/4 69 44 3/4 36 5/8 42 5/8 42 1/8 76 1/2 40 3/8 44 59 1/4 57 1/4 52 1/2 65 1/2 39 3/4 22 1/2 493/4 45 3/4 31 7/8 28 1/2 22 1/4 67 1/4 44 1/2., 27 1/4 79 1/2 41 1/4 62 1/4 25 57 1/8 39 1/8 443/4 35 5/8 35 7/8 71 1/4 43 5/8 39 1/2 59 76 Original Recom. Price 60 74 1/8 53 50 23518 (c) 50 1/2 53 1/4 26 (c) 27 3/4 79 (d) 33 1/8 34 1/8 27 3/4 (e) 62 1/2 41 1/2 30 3/8 42 1/8 35 1/4 75 3/8 (d) 47 7/8 41 1/2 53 7/8 445/8 41 693/4 393/4 24 5/8 59 42 (c) 38 1/8 (a) 32.3/8 217/8 (a) 66 38 3/8 27 1/4 69 3/4 44 1/2 50 19 1/8 573/4 36 3/4 30 3/4 32 1/2 373/4 59 37 3/4 37 40 1/8 (d) 69 S&P Rating A B A AAA A B A A- AB AA AA A A A A B BB A A B .- A AB A B A B A B B B B B B A- A- Comment Buy-Hold Buy-Hold Hold for 85-90. Buy-Hold Hold for 33-35. Hold for 82-92. Buy-Hold H')ld for 44. Buy-Hold Hold Hold for 50. Hold for 50. Buy-Hold Buy-Hold Hold Hold Buy-Hold Hold for 54. Buy-Hold Buy-Hold Buy-Hold Buy-Hold Buy-Hold Hold for 75. Buy-Hold Buy-Mold Buy-Hold Buy-Hold Hold for 60. Hold Buy-Hold Buy-Hold Buy-Hold Buy-Hold Buy-Hold Hold for 95. Buy-Hold Hold for 85. Buy-Hold Buy-Hold Buy-Hold Buy-Hold Hold for 45. Buy-Hold Hold for 100-105. Buy-Hold Buy-Hold Hold for 80. Buy-Hold (a) – Adjusted for stock dividends. (b) – If rights to buy Screen Gems at 9 used, each 100 shares owns 20 shares Screen Gems now selling at 21. (c) – Adjusted for split. (d) – Adjusted for sale of rights, I (e) – Adjusted for capital gains distribution, (f) – Formerly U. S. Foil B, now exchanged for Reynolds Metflls. i !

W—-a–l–s-tInocn.–&—-C—o. Members New York Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CI-YCAGO OFFICES COAST TO COAST AND OVERSEAS TABELL'S MARKET LETTER July 7, 1961 On a modest increase in volume, the market rallied during the short week to reach an intra-day high of 694.72 on Friday. Both the Industrial average and the Rail average have broken the downtrend lines extending from the May intra-day highs of 714.69 and 149.14. Also, our breadth-of-the-market index has moved higher, although it is still be- low its Spring high. There is overhead supply at 700-715 in the Industrial average that may furnish near-term resistance, but the overhead supply area may not be as important as the 680-670 support area which has held on two downside attacks. If the optimistic projections of Gross National Product made recently by both Sec- retary Dillon and Fortune prove to be correct, the impact on earnings could be very sub- stantial over the next year and should be reflected in higher stock prices in the more basi and cyclical industries. Earnings on the thirty stocks in the Dow-Jones Industrial average have been in a plateau for the past five years, despite the fact that the price has advanced 31 from the 1956 high. Dividends also have followed the same pattern, as noted below -195-6 Earnings 33.34 -195-7 1958 -1959- -1-960 36.08 27.94 34.31 32.30 Dividends 19.63 20.18 18.38 19.58 20.06 Earnings for the first quarter of this year were down sharply to 5.70 as compared with 8.38 in the first quarter of 1960. This brings twelve months earnings for the perio ended March 31st to 29.62. Earnings for the second quarter will be better than the de- pressed figure for the first quarter, but will not equal the 8.38 shown in the second quar ter of 1960 which was the peak for the year. For the demfthe year, the compar- isons should become increasingly favorable, but with the n i f the first half, earn- ings for all of 1961 will probably not be e 8 rned in 1960. On the basis of 29 for the twelve months ended June 3 and Yn an extremely hlgh-ratlO and one that cannot ailiStl background improves sharply. r\\\ df 61, the average is tic .ed 961 is -mamtamed unless Hie busmes However, the chances t i ement in earnings will be shown appear 1962. As noted in h 1 ue .S. News & -world Report, Government spending will be up sharpl of this year and will continue to rise in 1962. In the first six months of s ea ased on a cash budget rather than the regular budget, th Government took in an mated 3 billion more than it spent. During the next six months the Government is e ected to spend 9 billion more than it takes in. Consumer spending should also rise sharply. Family savings increased during the recession of 1960 and debt has been reduced in recent months. Family income is also expected to rise over the coming twelve months and the combination of the two has always produced heavy spending in past recovery periods. Translated into earnings, the strong rise in both Government and consumer spending could mean that the Dow-Jones Industrial average might be earn- ing at the rate of close to 40 for the final quarter of this year, although earnings -for all of 1961 will not be much higher than 1960. The 1962 results should be sharply higher. If profit margins, an unfavorable immediate factor, improve only modestly, the 1962 earn- ings figure could be 40. If increased volume results in higher profit margins, earnings of 45 are possible. If investor confidence continues at its present high level, it is, probable that the averages could sell at twenty times the more conservative figure of 40, or at the 800 level for the Dow-Jones Industrial average. This is about in line with the upper part of our technical projection of 725-825 in this upward phase of the market. The uncertain factor is, of course, possible unfavorable foreign developments with the Berlin crisis coming to a head later in the year. If the favorable pattern develops, I would expect some of the blue chip issues that led the rise in 1949 to 1956 and have been dormant for the past five years, to be the market leaders again. They also have been in an earnings plateau for the past five years. They should be the prime beneficiaries of an over-all increase in earnings. Dow-Jones Ind. 692.73 EDMUND W. TABELL DT 1 A 1 .,,, Vi'trLS'f'ON Ilt CO. mMOO. IS to be eonstrued as, an offer to sell or a sohcitatlOn to buy any '1ecurthes referred to herem The information contained herem IS nol guaranteed as to accuracy or completeness and the furnishIng thereof IS not, and under no circumstances is to be construed as, a representa- tIOn by WnlRton & Co. Inc All e,;presslons or opinion arc subject to chQnge Without notice. Walston & Co, Inc, and Officers, Directors, Stockholders and Employees thereof, purchase, sell and may have nn interest In the secuntles mentioned herem market letter is mtended and presented merely as a genernl. Informal commentary on aay to day market news and not as 0. complete analysis Additional information with respect to any securities referred to herem will be . . . . . . . , .. . . . . . .

, Walston &- Co. Inc, – – – – Membe,'s New Y01'k Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST 10 COAST AND OVER.SEAS TABELL'S MARKET LETTER July 14, 1961 The overhead supply at the 700 -715 area in the Dow-Jones Industrials proved to be at least a temporary barrier to the advance, and after reaching last week's intra-day hig of 698.97, the Industrials drifted downward on restricted volume to reach a low of 682.58 early Friday.The decline was concentrated in the erstwhileglamour stocks. The more ba issues held relatively well. Lack of buying interest rather than selling pressure appeared to be the motivating force behind the downward drift. After a lower opening on Friday, the market reversed the trend and closed up 5.05 points on the day. The intra-day high wa 693.68, and another attempt.to penetr,ate theoverhead resistance at 700-715 appears.to b in the offing. The action of individual'issues continues to be of primary importance. The stocks marked Buy-Hold on our recommended list of June 30th appear attractive For those not interested in income, suggest taking profits in Kennecott (1\5 3/4), recommended at 741/8, and switching into Magma Copper (54 1/2). We are also adding U.S. Plywood (483/4), and Collins & Aikman (43) to the recommended list. COLLINS & AIKMAN CORPORATION Current i'rice Current Llividend Current Yield Long Term Debt 43 1.20 2. 80/0 3,850,000 For most of the years 1959 and 1960, the common stock of Collins & Aikman Corporation held roughly in the 22-30 range. In the early part of this year the stock moved up Common Stock 528, 600 shs. sharply and has reached a 1961 high of 44 7/8. Net Sales, 1961-2 (E) 70,000,000 Despite this sharp advance, the stock has not Net Sales, 1960-61 65,370,000 yet fulfilled of the 22-30 base, Earn. per Sh. 1961-2 (E) 3.50–4.00 which is aroun sMre, nor does it ap- pe r Sh. 1960 -1 2.47 – MarkeLRange..l9.61A4-..U8–23 '0- pear to prospect P. in un lkman tion to near term years– a . su 'er of upholstery and carpets for the automotive industry. Such i ccounted for some 850/0 of sales, but this dependency has dustry now account for es t where sales to the automotive in- i d ,f total billings. A program of expansion and diversification un e en e five years has resulted in the introduction of nu- merous new produ h o y now produces tricot lingerie, apparel fabrics, tufted carpets, decorator r cs specialty yarns. The company has long been a major sup- plier of fabrics for ai t interiors and has been supplying seat covers and carpet for most new jet aircra . Most of Collins' products, it must be noted, are specialty items on which product- ion can be controlled closely and which are not subject to the usual vicissitudes inherent in the textile industry. This, in turn, has brought a good deal of stability to earnings whic was not formerly present. For example, in the years 1951 to 1956, the company earned as much as 5.46 per common share in one year, but incurred a deficit in three of the six years. In 1957, earnings improved to 1. 50 per common share and since then have held in a plateau at 2.27 in 1958, 2.54 in 1959 and 2.47 in 1960. This was, of course, a period in which the textile industry generally was showing wide fluctuations. Stability has, therefore, been achieved,l;mt stability alone does not account for the recent rise in price, and the real growth potential inherent in the changes made at Collins over the past few years is just beginning to become apparent. 1960 earnings were heavily penalized by non-recurring expenses,otherwise they would have shown a reason,ably good improvement over 1959. For the first fiscal quarter of 1961,ended in May,the company earned 74 cents per common share as against 40 cents in the corresponding period. The first quarter of Collins' year is usually the poorest and it would appear that, barring the possibility of an automotIve strike, the company's sales could increase some 100/0 to around ;;70 million and profits could improve to somewhere in the 3.50 to 4.00 range. Further growth from this level could well be achieved. The current dividend payout of ;;1.20 is less than one-third of estimated 1961 earnings — considerably less than has usually been paid. It would seem, therefore, that a dividend increase in the fairly near future is a reasonably likely possibility. The stock is being added to our recommended list for capital appreciation over the medium term. contnined herln IS not unl!Q'ilo cfiE\lmstances IS to be construed as, an offer bl sf1)Jw(!h referred to herem The mformatlOn tt. c'(uracy or completeness Ilnd the furnlshmg thereoHsrU)l;, ana'un'iter no IS to be construed as, a representa- tion by Walston & Co, Inc All expresSIons of opinion nrc subJect to change Without notice Walston & Co., Inc., and Officers, Directors, Stockholders nnd thereof, purchase, sell and may have an Interest In the securities mentIOned herem. ThIS market letter 18 Intended and presented merely as II general, Informal comment.ury on dny to d'ly market news and not ns a complete anab'sls Additional informatIon With respect to nny securities referred to herem Will be . . \\1'301

WalstIoncn. &Co . NEW YORK Members New York Stock Exchange SAN FRANCISCO LOS ANGELES PHILADELPHIA CHJCAGO OFFICES COAST 10 COAST ANti OVERSEAS TABELL'S MARKET LETTER July'21 1961 The market, as measured by the Industrial average, continues to swing back and forth in a relatively narrow trading area. -,'lith the exception of a short period in May and early June when the Dow-Jone! Industrial average moved above 700, the Industrials have held in a narrow trading shelf between roughly 700 and 670 for over three and a half mont s This is a trading range of less than 50/0. ',iThile this is true of the Industrial average com- posed of investmel'lt issues, it does not apply to the market as a whole. Some of the dre boat issues that were pushed up to unwarranted highs have had declines of 30 to 500/0 in the same period of time. The fact that the investment sector has held up so well while the speCUlative-excesses ofihe early months 'of the year were being corrected is a constructi indication. This action highlights the thought that this letter has stressed since April that the market leadership was changing and that the stocks of larger basic companies would the new leaders of the remaining portion of the advance. A breakout of the trading area in which the market has held since April would undoub edly be of some technical significance for the near term. Ability to reach a new high wou indicate a minimum advance to the 725 -750 area. A downside breakout of the trading are would indicate a decline to the 645-635 range which would be an approximately 50 corre t ion of the advance from the October low of 565. Rather than being disturbed at such a development, if it occurs, I would welcome it as a buying opportunity for the purchase of sound, well situated issues. I believe the 680-630 range is a longer term buying area similar to the 600-550 area which we suggested as a buying area in the last half of 1960. The Canadian stock market has also been in an advancing phase since late 1960 and the Toronto Industrial average has had a slightly larger e rise than ours.Also, it has held up relatively well because of the absence of t excesses that existed in some sectors of our markets tr ea. it e Canadian dollar selling at a discount rather than a premium, n ve to purchase raw materials outside of Canada, but sell their product Iin'ifue U ' States, are in a position the relative Canada, – like the United States, also seems t Five Canadian compani ar another Canadian issue Do . i stages of a business recovery. a\M.bn C\!O recommended list and the purchase of & (18 3/8) is now suggested.Listed on the American in assets and 3 . 't 0 f the larger Canadian companies (375 million . The acquisition of Howard Smith Paper Mills and St. Lawrence a on b s pulp and paper to 400/0 of sales with building materials 35 and chemical-pr c ng 25. This diversified company should benefit from the long term growth of ada. Three other Canadian issues on our list are traded on the American Stock Exchange as well as in Canada. They are Facific Petroleum (10 7/8), Consolidated Millin & Smelt ing (24) and Campbell Chibougamau (8). The first company owns substantial oil and gas reserves. In 1960, Pacific Petroleum acquired the Canadian operations of Phillips Petrol eum Co. and Phillips now owns 39 of the common shares. This should strengthen man- agement and the company, though speculative, should be an important factor in Canadian oil and gas. Consolidated Mining & Smelting is one of the largest lead-zinc-silver com- panies in the world. It sold as high as 40 in 1955 and yields 3.8 (subject to 15 non- resident tax). Campbell Chibougamau is a most interesting speculation on the possibil- ity of the company becoming an important copper producer through the development of its Henderson Mine. Gold development could be relatively important. The other two Canadian issues on our recommended list, Dome Mines (23 1/2) and McIntyre Porcupine (34 5/8) are listed on the N. Y. Stock Exchange. McIntyre Porcupine has moved up a bit from its originally recommended level of 27 3/4,but still has consider able appeal. The company mines gold and silver, but also has a large investment portfolio including 700,000 shares of Ventures,Ltd.Market value of the portfolio was equivalent to 35 a share on December 31, 1960. Dome Mines is an interesting speculation on a pos- sible rise in the price of gold. From a technical point of view, the gold stocks have been building up what may turn out to be potential bases. These issues appear to have a very sizable upside potential and not too much downside risk. The main error could be in timing. The two issues noted above are relatively conservative. Some of the lower-priced Canadian issues could have a much wider percentage appreciation. RB, 0 0 UIis to be con;trued an offer to sell f\ so lel on bt tny c c erred to herem. The mCormatlOn toel;QUrDcy or completeness and the furnlshlnJl thercofiiT!A.tJ a o&rdii\(sbmJa\li(lo be construed as, n representn .1…..fi'lfn -ctP.-ihe of opinion nrc subJect to chanJle Without noHCe W'a ston' ,1n'k' Directors, Stockholders and thereof. purchase, sell and may have an Interest in the SecUrltlCS mentIOned herem ThiS market letter IS mtended and presented merely as a general. informal commentary on dny to dny mnrket news and not as a complete anah'sIS AddltJonnlInformatlon With respect to any seCUrIties referred to herem ,ill be \\N 301